Retirement plan checklist: 10 years from retirement

Important information - the value of investments and the income from them can go down as well as up, so you may get back less than you invest.

Where do you want to be 10 years from now? This question doesn’t just apply to career paths, it’s also worth asking in relation to your finances.

If your answer is ‘enjoying my retirement,’ or ‘quitting the nine-to-five grind’ now is the time to take a closer look at your savings and investments to ensure they are retirement-ready.

At this stage you have time on your side — a decade gives ample opportunity to ensure there are solid foundations to your financial plans. But don’t be lulled into a false sense of security. 10 years can soon fly by! Failing to act now could mean working longer than planned or downsizing your retirement aspirations.

At this point, your focus should be on understanding your current position, creating a realistic plan and boosting savings levels. This checklist offers some useful pointers to help you build a robust retirement plan.

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Get a State Pension forecast

The State Pension, currently worth around £221.20 a week¹, is a key part of most people’s retirement income, so it’s important to understand when it will be paid and how much you’re likely to receive.

The figure above is the full new flat-rate pension, but eligibility depends on your National Insurance contributions. The State Pension age is currently 66 but will begin to rise gradually to 67 from May 2026. It will continue rising to 68 - currently scheduled for 2044 and 2046, although this could be brought forward. This could affect the timings around stopping work and may mean you need to dip into savings or investments to cover any income gap.

• Check your State Pension forecast

Know how much you’re worth

Gather up-to-date statements for all your savings, investments, and pensions. Dig through old paperwork to ensure you haven’t lost track of older pension pots, particularly those linked to previous employers. You can use the Government’s Pension Tracing Service to find contact details for lost pensions.

Alongside current valuations, check forecasts to see what these funds might be worth at your planned retirement date. Most pensions should include forward projections, but remember it is just this, a projection, and the exact fund size will depend on contributions made and underlying investment conditions. If you have a defined benefit pension (also known as a final salary pension) this should show the salary-linked income you’ll receive at your set retirement date, which may differ from your state pension age.

Know how much you’ll need

Even if it’s just an estimate, think about your potential spending requirements in retirement. Will you still have a mortgage, or can you reduce or pay this off within the next 10 years? Will other debts also be cleared?

Industry body Pensions UK’s provide helpful guidelines for typical expenditure levels for a “moderate” or “comfortable” retirement. Tools like Fidelity’s Retirement Planning Calculators can help you create a more personalised plan and ensure you’re on track for the retirement you want.

• Find out if your pension savings are on track with Fidelity’s retirement planning calculators

Supercharge your savings

Starting your retirement plan now gives you time to plug potential gaps. The decade before retirement often coincides with peak earning years, providing an opportunity to supercharge your savings.

Maximise tax-efficient savings vehicles like ISAs and SIPPs, while considering how you’ll use them in retirement. For higher-rate taxpayers, pensions offer generous tax relief on contributions, although income taken from pensions (except the 25% tax-free lump sum) is usually taxable. ISAs, on the other hand, allow tax-free withdrawals. A mix of both can provide flexibility and ensure long-term growth.

• Learn more about ISAs
• Learn more about SIPPs

Don’t overlook workplace pension contributions

Tax relief applies to all pensions, including SIPPs and workplace schemes. Workplace pensions typically come with employer contributions, which can significantly boost their value. Many companies offer “matching” arrangements, increasing their contributions if employees contribute more than the minimum — so make the most of these opportunities where appropriate. You wouldn’t turn down a pay rise from your company, so why turn down additional pension contributions, which are effectively deferred pay.

Consolidate investments

Managing multiple smaller pots can be time-consuming and may not be cost-effective. Ten years before retirement can be an ideal time to consolidate holdings. This helps to ensure you are not paying over the odds on charges and that your money is in a suitable investment strategy. 

However, before moving older pensions or investments, check that you’re not giving up valuable guarantees, such as enhanced annuity rates or guaranteed minimum pensions.

• Learn more about our cashback offer on transferring pensions and ISAs

Review your investment strategy

With 10 years to go, it’s often sensible to keep most of your long-term savings invested rather than holding them all in cash, which may not keep pace with inflation.

However, equity investments can be volatile, so as you near retirement, you may want to consider gradually shifting some savings into lower-risk assets. Much will depend on individual circumstances and how you wish to access your pension money (for example, via drawdown or by buying an annuity or a combination of the two), so consider seeking advice.

Commit to regular reviews of your investments to ensure they reflect your circumstances and risk tolerance. A clear, balanced strategy will help to safeguard your retirement savings while enabling them to grow.

• Learn more about managing risk with our principles for good investing

Source: 

¹ Gov.uk, January 2025

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Read more from our series: 

• Retirement plan checklist: 2 years from retirement
• Retirement plan checklist: 5 years from retirement